Alex Rodriguez Has Cash Problems, Among Other Things
Alex Rodriguez and Marc Lore are in the process of purchasing the Minnesota Timberwolves from longtime owner, Glen Taylor. It’s a process that started over a year ago and is scheduled to happen in stages. The first was a 20% purchase that took place in July 2021. The second payment is scheduled to be made by the end of this year.
But there’s a problem. According to the New York Post, Rodriguez doesn’t have the cash to make his share of the next 20% payment that’s due. In fairness, he didn’t have it last time, either. Instead, it’s Marc Lore who now owns 13% of the Timberwolves. Rodriguez just 7%.
However, A-Rod at the time had failed to come up with his full share, leaving Lore to cover the balance, three sources close to the situation said. As a result, Lore now has a roughly 13% share in the Timberwolves while A-Rod has amassed a mere 7%. “Alex and Marc were supposed to be 50/50,” an NBA source said. “Alex couldn’t come up with his half.” Now, terms of the deal require A-Rod and Lore to make the next 20% payment by year’s end, and A-Rod is scrambling to raise his half in addition to the cash he needs for the down payment, the three sources confirmed. – Josh Kosman (New York Post)
A-Rod Needs Jennifer Lopez Back (For Business Purposes)
Marc Lore told The Post that he and A-Rod are still acting partners and didn’t ring any additional alarms on their business or personal relationship. But included in this scathing report, was an infatuation that Lore had for Rodriguez’ former fiance, Jennifer Lopez.
In fact, J-Lo was a staple of the business meetings A-Rod held at the couple’s house. Oftentimes, her chosen business attire was workout gear. I guess you’d call the dress code “business-casual”. And now that Jennifer Lopez has moved on and remarried Ben Affleck, Alex Rodriguez is reportedly struggling close deals.
A-Rod frequently called for meetings with prospective business partners at the power couple’s lavish homes in Bel-Air and the Hamptons — and Lopez was typically on the premises, according to sources close to the situation. “You always took your A-Rod meeting with J.Lo,” the source said. “She is coming in and out of the room with workout clothes.” The bigger problem, however, may be that A-Rod now lacks J.Lo as he looks to charm co-investors, according to some insiders. “His ability to raise capital went from strong to meaningfully weaker,” believes a source who knows A-Rod well. “J.Lo validated him.” – Josh Kosman (New York Post)
Timberwolves Sale in Jeopardy?
It sounds as if the sale of the Minnesota Timberwolves could be in jeopardy. Alex Rodriguez is in danger of losing out on his eventual status as majority owner. In fact, he could find himself throwing a bunch of money into the franchise and pulling strings behind the scenes, just to wind up as a low-class minority owner. Someone with no say in operations.
At that point, the ball would be in Marc Lore’s court. Would he want to pay for most of the franchise himself? Could he afford that? He has a lot of his financial worth wrapped up in other business ventures, but you’d have to imagine this as an embarrassing and expensive failure if he were to drop out.
Glen Taylor, according to the New York Post, isn’t concerned. He would be happy to entertain new suitors, given the asking price would be half a billion more than what he’s charging Marc Lore and Alex Rodriguez.
If the pair fails, insiders say Timberwolves owner Glen Taylor won’t be overly disappointed, according to an NBA source. That’s because Taylor believes the value of the team has risen to about $2 billion since they struck the deal, and believes he can make more by starting a new sales process. – Josh Kosman (New York Post)
Nevertheless, it’s not clear A-Rod can cash in on the price he’s locked in. That’s partly because NBA rules won’t permit him to become an owner unless he personally can foot the bill for 15% of the total purchase price — nearly $200 million when factoring in the team’s debt — without the help of co-investors. Meanwhile, if Rodriguez fails to amass a 50% stake, he and his co-investors could end up plowing cash into the team without getting a say in the team’s operations. – Josh Kosman (New York Post)
Eric Strack | Minnesota Sports Fan